Budget 2015, 10th Malaysian Plan and 11th Malaysian Plan

1.      This year Budget is the last installment of 10^th Malaysian Plan. The 10^th Malaysian Plan (10MP)  is a testament of the ambitious Government Transformation Programme (GTP) and the New Economic Model (NEM), which premised on high income, inclusive and sustainability.

2.      As the first ever of Development plan for our Prime Minister, YAB Datuk Seri Najib Razak, the 10MP sets the stage for a major structural transformation that a high-income economy requires. The Plan contains new policy directions, strategies and programmes that enable the country to emerge as a high income nation.

3.      After 4 years of implementation, it is logical for us to gauge the success of this Plan thus far before ever we embark of a discussion for the Budget 2015. According to an article by The Edge Malaysia, the Plan targeted an annual growth of GDP for 6.00%, yet the forecast for our GDP for the first half of 2014 shows lesser value with 4.50% growth. With the introduction of GST next year, achieving 6.00% growth GDP is proved challenging for the policy makers and economic players.

4.      One of the 10 big ideas of 10^MP is unleashing productivity-led growth and innovation, however records shows that our national productivity remained flat and we are still struggling with talent issues like brain drain and high dependency on foreign workers. Talent Corporation an agency created to “manage” the talent issue in the country and is still working hard to achieve their target.

5.      Another big question is the position of our National Debt. Record shows that our Total Debt-to-Equity stands at 54.71% which just shy of 0.29% from the limit set by the Loan (Local) Act 1959. The Plan sets clearly that sustainability as key element and reducing the deficit is essential to pare down our National Debt. Again with only 1 year to go, it is like mountain to hike even the fiscal consolidation is undergoing.

6.      There are other issues within the 10MP, however, suffice to say is our Government really committed to follow through the plan that has been set up by itself. We can’t discount the possibility of external factors such as world economy dynamics, and all parties must alert and work together to prevent such thing to happen again, as we are the last stage of vision 2020. The 2015 Budget will become the bridge for us to leap to 11^th Malaysian Plan, the last ride of development plan before we put our self on par with the rest developed economy worldwide.

credit to The Edge Malaysia.